USD/CAD exchange rate generated some gains on Friday, as the traders digest key employment numbers out of the US and Canada. In addition, it appears that for the past few weeks, the Canadian Dollar currency rate has stopped its correlation with move in crude oil prices.
US nonfarm payrolls surged to 161 thousand, however this chop short of the estimate of 171 thousand. Average Hourly Earnings increased by 0.4%, increasing higher than estimate of 0.3%.
On the other hand, in Canada, the country’s economy added 43.9 thousand jobs, higher than the estimate of a loss of 10.0 thousand jobs. Conversely, all of the growth were part-time jobs, as Canada’s economy essentially shed 23 thousand full time positions. Unemployment rates remained unchanged in both Canada and the US. Canada’s trade deficit ballooned to C$4.1 billion, much higher than the forecast of a C$1.7 billion deficit.
There were no curve balls from the Federal Reserve meeting, as policymakers kept up the benchmark interest rate at 0.25%. Notwithstanding, the tone of the strategy proclamation was marginally hawkish message with respect to a December climb. The Fed said that the economy has enhanced and the business advertise stays solid. The Fed likewise noticed that swelling was moving towards its objective of 2 percent.
The GDP in August grew 0.2% month-on-month, which was in accordance with market desires, as indicated by financial specialists at Royal Bank of Canada. July’s GDP numbers were amended lower to 0.4% from a prior gauge of 0.5% expansion.
As of writing the USD/CAD pair is up 0.25% at 1.3430 facing the next up barrier at 1.3451 USD to CAD exchange rate. The resistance point for US Dollar to Lonnie exchange rate is around 1.3575 and finally 1.3839.